Comparative Advantage Of Foreign Trade Payment Method

　　 Telegraphic transfer (T/T): the more traditional way, the more durable it is.

Telegraphic transfer refers to the remittance through telegram, which is the remittance of a remittance bank to a remittance bank, where a remittance bank sends a telegram or telex to the destination's branch or agent bank, which instructs the remittance bank to pay a certain amount to the payee.

Advantages: quick payment, a few minutes to the account. The way of payment after first payment is the safest for sellers.

Insufficient: unsuitable for small amount foreign trade Transaction. Buyers and sellers need to pay fees and charges. For security reasons, some buyers only agree to wire transfer to the Chinese sellers' public accounts, while the Chinese electricity supplier is not the type of company. The information requirements for banks are very high, and sometimes they will be returned because of incorrect bank branch address or SWIFT number being not accepted.

Scope of application: Telegraphic transfer It is the traditional B2B payment mode, which is suitable for large transaction payment.

　　 PayPal:, the careless account was frozen again.

PayPal is currently the largest online payment company in the world, allowing e-mail to identify identity. user Transfer funds between.

Advantages: transactions are completed online. It has wide application scope, especially trusted by American users. Both the receiver and the receiver must be PayPal users, so as to form a closed loop transaction with good wind control.

Disadvantages: high fees, foreign currency withdrawals for the renminbi complex procedures. Overprotect buyers, sellers account is easy to freeze.

Scope of application: cross-border e-commerce retail industry, dozens to hundreds of dollars of small transactions more cost-effective.

　　 Western Union remittance: not your little partner will not choose it.

Western Union is the abbreviation of the Western Union international remittance company. It is the world's leading express remittance company, which can be remitted and withdrawed in the Western Union's location of most countries in the world.

Advantages: the fees are borne by the buyer. For sellers, the most cost-effective way is to raise money first, then deliver goods, with good safety. The rate of arrival is fast.

Disadvantages: because buyers are very risky, buyers are not easy to accept. Buyers and sellers need to operate under the Western Union counter. The commission fee is higher.

Scope of application: cross-border electricity retail or small wholesale trading below ten thousand US dollars, traditional foreign trade.

　　 Hongkong Off Shore Company bank account: Mom doesn't have to worry about the $50 thousand restriction.

By opening offshore bank accounts in Hongkong, the seller receives remittances from overseas buyers and remittances from the Hongkong account to the mainland account.

Advantages: there is no limit to the acceptance of wire transfers. There is no need to limit the amount of annual remittance to US $50 thousand, just like the mainland bank. Different currencies can be freely exchanged at will.

Disadvantages: the bank account in Hongkong also needs to be transferred to the mainland account, which is more troublesome. Some customers choose the way of underground banks, which include capital risk and legal risk.

Scope of application: traditional foreign trade and cross-border electricity suppliers are suitable for sellers with certain trading scale.

　　 Credit card payment: no payment, fraud or anything.

Cross border e-commerce sites can cooperate with international credit card organizations such as Visa and MasterCard, or directly cooperate with overseas banks to open ports for receiving credit cards from overseas banks.

Advantages: the most popular payment method in Europe and the United States. The users of credit cards are very large.

Disadvantages: the access method is troublesome, the deposit is required, the charge is high, and the payment amount is too small. Black card spread, there is a risk of refusal to pay.

Scope of application: platform for cross-border electricity retail and independent B2C.

　　 Payoneer: Ping An has just invested in it, do you know?

Payoneer is an online payment company based in New York. Its main business is to help its partners send funds to the world. It also provides BofA / European bank account for global customers to receive trade payments from European and American e-commerce platforms and businesses.

Advantages: convenient, the Chinese ID card can complete the Payoneer account online registration, and automatically bind the American bank account and the European bank account. Compliance, like European and American enterprises, receives remittances from European and American companies, and completes online foreign exchange declaration and settlement through Payoneer cooperation with Chinese payment companies. Cheap, wire transfer set a single top price, RMB settlement of up to no more than 2%.

Applicable crowd: a single cross border e-commerce website or seller with a small amount of funds but a wide distribution of customers.